Stimulus Update
As of January 1, 2011 the United States government has approved over $19 Billion dollars in funding for free standing, independent physician offices to convert to Electronic Health Records (EHR) over a five year period through section IV (Medicare and Medicaid Health Information Technology) of the American Recovery and Reinvestment Act of 2009 (ARRA). The ARRA is designed to reduce health care costs by accelerating the use of Information Technology for health care facilities throughout the country.
Physicians and facilities that can report meaningful use of Electronic Health Records by 2011 will be eligible to receive incentives. The official definition of Meaningful Use is expected to be available in December of 2009.
Below is a chart with the potential financial incentives that will become available to facilities that show Meaningful Use.
Potential incentives and reductions
First payment year
First payment year amount, and Subsequent Payment Amounts in Following Years Total
Potential Incentive (Medicare)
| First Payment Year | First Payment Year and Subsequent Payment Amounts in Following Years | Total Potential Incentive (Medicare) | Reduction In Fee Schedule for Non-Adoption / Use |
| 2011 | $18K, $12K, $8K, $4K, $2K | $44,000 | $0 |
| 2012 | $18K, $12K, $8K, $4K, $2K | $44,000 | $0 |
| 2013 | $15K, $12K, $8K, $4K, $2K | $39,000 | $0 |
| 2014 | $12K, $8K, $4K | $24,000 | $0 |
| 2015 | $0 | Penalties | -1% of Medicare / Medicaid Fee Schedule |
| 2016 | $0 | Penalties | -2% of Medicare / Medicaid Fee Schedule |
| 2017 | $0 | Penalties | -3% of Medicare / Medicaid Fee Schedule |
Each physician or facility has the potential of receiving up to $44,000.00 through Medicare and up to $64,000.00 through Medicaid. There will also be imposed penalties if facilities are not able to report new meaningful use of EHR systems by 2015.
Qualifying for incentive payment s through Medicaid:
- 1. Your Facility cannot be Hospital based
- 2. You must demonstrate meaningful use of EHR
- 3. The Physicianís office must treat a patient population of which at least 30% receive medical assistance
Any further Questions or Concerns, please contact GAIA Software at 1-800-972-9077. Or you may reach us by email at brian.kinman@gaiasoftware.com.
